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  1. #1
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    Why the Stock Market Goes Up More on Bad News

    Why does the stock market go up with light volume and bad news. AIG is unwinding and Goldman Sachs is helping the feds out. Beware short term.

    Why This Rally Is Unsustainable -- Seeking Alpha


    CFH HMagic bball season next year.
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    Re: Why the Stock Market Goes Up More on Bad News

    NOBODY knows what the stock market will do. It is just as likely to go back to 10-11k short term as it is to fall back to 5-6k.



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    Re: Why the Stock Market Goes Up More on Bad News

    Believe me, i know how the market doesnt make sense. I own some citi stock i bought cheap. It was up as high as 4.50 before earnings released. Citi beat the street, made a profit before dividends, and yet dropped about 1.50 in 2 days.



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    Re: Why the Stock Market Goes Up More on Bad News

    Stress test. If Citi is viable after tomorrow look for it to make a big jump. Bought some cheap shares myself.



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    Re: Why the Stock Market Goes Up More on Bad News

    1) low volume = easier to move the market

    2) The market is still down almost 40% from its peak last year

    3) Notice how the spin is 'The rate of decline is slowing' or 'we see glimmers of hope' ? When the market was tanking everyday we were hearing things like 'major banks are all insolvent', 'worse than the great depression', 'give me trillions or it will be worse than the great depresssion', or my personal favorite ' the day we were literally hours away from the world financial system crashing''.



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    Re: Why the Stock Market Goes Up More on Bad News

    Just realize that stocks are priced with the future in mind. If bad news and the stock price goes up, it may just mean the news isn't as bad as analysts predict.

    You can also see good news and stocks go down. It's because the news wasn't as good as analysts predict.

    I didn't read the article and have no idea what will happen in the future, but those are some fundamental reasons why the prices can move in the opposite direction of news.



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    Re: Why the Stock Market Goes Up More on Bad News

    Beating Lower Expectations = Increase Stock prices.

    I picked up some Ford stock a few months ago, once they said they did not need Gov. $$ to survive, that told me the work they haddone for the past 2-3 years to change their business model was paying off.

    Even though their sales were down, they are making good gains
    in overall market share.

    They could be a $15-18 stock in a couple of years.
    Then again they probably could just as easy be a .15-.18 stock



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    Re: Why the Stock Market Goes Up More on Bad News

    I bought some Ford at a buck and a half. I think their future looks pretty good and they may eventually benefit from the problems at GM and Chrysler, especially their truck business. I think there was some good news in the housing sector that sparked the market today, so there is some good news trickling in with the bad.



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    Re: Why the Stock Market Goes Up More on Bad News

    The main thing I try to remember is that the "experts" hear about good and bad news well ahead of it appearing in the mainstream press, so when the news is released, it usually already been priced into the market.



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    Re: Why the Stock Market Goes Up More on Bad News

    Stock market=confusing


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    Re: Why the Stock Market Goes Up More on Bad News

    All I know is, 'buy low, sell high!'

    Seriously, a few months ago I purchased quite a bit of ING stock at $4.20. Today it's at $9.91. Plus, their earnings report comes out May 13, so I'm hoping for good news there, which could make it jump a few bucks or more.

    On the flip side, I also invested a good chunk in Bank of America, Citi, and AIG when they were trading at next to nothing a few months ago. Just a hunch on those.



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    Re: Why the Stock Market Goes Up More on Bad News

    Quote Originally Posted by cytheguy View Post
    All I know is, 'buy low, sell high!'

    Seriously, a few months ago I purchased quite a bit of ING stock at $4.20. Today it's at $9.91. Plus, their earnings report comes out May 13, so I'm hoping for good news there, which could make it jump a few bucks or more.

    On the flip side, I also invested a good chunk in Bank of America, Citi, and AIG when they were trading at next to nothing a few months ago. Just a hunch on those.
    People like you have probably saved these companies from total collapse. If people do not invest even at the lowest point, the companies go away. That said, Citi and BA are both trying to raise $10B in private capital so that they do not have to go back to the draconian govt well.


    CFH HMagic bball season next year.
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  13. #13
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    Re: Why the Stock Market Goes Up More on Bad News

    Quote Originally Posted by alarson83 View Post
    Believe me, i know how the market doesnt make sense. I own some citi stock i bought cheap. It was up as high as 4.50 before earnings released. Citi beat the street, made a profit before dividends, and yet dropped about 1.50 in 2 days.
    Buy the RUMORs then sell the FACTS. Timing rumors and facts is the hard part.



  14. #14
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    Re: Why the Stock Market Goes Up More on Bad News

    Because bad news that really isn't as bad as it was expected to be is "good" news????

    Just a thought...


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    Re: Why the Stock Market Goes Up More on Bad News

    Quote Originally Posted by Wesley View Post
    Why does the stock market go up with light volume and bad news. AIG is unwinding and Goldman Sachs is helping the feds out. Beware short term.

    Why This Rally Is Unsustainable -- Seeking Alpha

    I fear that the average retail investor is being setup by this rally. Look no further than the magnitude of the government bailout.

    It took years to create this crisis. It is going to take even longer to recover. The taxpayers are funding a giant government ponzi scheme. The bailout has simply shifted the problem from the financial sector to the taxpayer's responsibility.

    The value of the markets were artificially inflated by a credit bubble that will not soon be repeated. These are going to be very challenging times for this country.



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